Chapter 17, Problem 17.26E

FIFO method, equivalent units. Refer to the information in Exercise 17-24. Suppose the assembly division at Quality Time Pieces, Inc. uses the FIFO method of process costing instead of the weighted-average method.

Required

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

17-24 Weighted-average method, equivalent units. The assembly division of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017:

^a Degree of completion: direct materials. 80%: conversion costs, 35%.

^b Degree of completion: direct materials, 80%; conversion costs, 40%.

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.